Oil prices ticked higher during Tuesday's Asian trade, driven by fresh optimism around easing tariff policies and signs of strengthening crude oil demand from China.
By 3 pm AEST (5 am GMT), Brent crude futures had risen by US$0.19, or 0.3%, to US$65.07 per barrel, while U.S. West Texas Intermediate (WTI) crude advanced US$0.20, or 0.3%, to US$61.25 per barrel.
The gains followed remarks by President Donald Trump, who signalled a willingness to ease certain auto tariffs. Speaking at the White House on Monday, Trump said he was exploring changes to the 25% tariffs on foreign cars and parts imported from countries like Mexico and Canada. He acknowledged the pressure on carmakers, noting that they “need a little bit of time because they're going to make 'em here”.
Analysts at ANZ noted recent downgrades to U.S. oil production forecasts and uneven compliance with OPEC’s output quotas. “This follows the U.S. government’s Energy Information Administration downgrading its 2025 growth forecast by 30% to 900kb/d,” ANZ noted.
The report also highlighted that “Kazakhstan increased its production again, with output rising by 37kb/d last month to average 1.852mb/d. That is 422kb/d more than the level it pledged to pump”.
China also played a key role in buoying sentiment, as the country’s crude oil imports picked up after several months of lacklustre demand. Traders interpreted this as a signal of stabilising consumption in Asia’s largest economy, potentially offsetting some bearish pressure in global markets.
Meanwhile, geopolitical risks remained in focus. U.S. Energy Secretary Chris Wright reiterated the Trump administration’s tough stance on Iran, stating on Friday that the United States “could stop Iranian oil exports” as part of broader efforts to curb Tehran’s nuclear ambitions.
